Tag: Social security

Recent reports published in Daily Finance suggest that the Social Security trust fund is going to begin its collapse around the year 2036. This means that you have about 24 years to adjust your planning and savings to compensate for this problem. This really is adequate time for most people to figure out how to make up the difference between what Social Security promises and what it will be able to deliver.

Tip #1 – Understand the Predictions

Before you panic you need to understand what the predictions about the Social Security trust fund are and how they will impact your retirement. First of all Social Security will still be paying out benefits after 2036. Chances are, however, that these benefits will be only about 70 to 80% of what is promised. If you are depending solely on Social Security as your retirement income then this is a bigger concern than if you were only depending upon it as a supplement to your other retirement income options.

Talk with Your Financial Advisor Now

The more time you have to make adjustments to your retirement planning the better your results will be. The best thing you can do right now is to meet with your financial planner or the advisor for your retirement plan. Talk about what you need to do to increase your final retirement fund balance so that it will cover what Social Security will not. When you talk with your financial advisor ask about your options and do not forget to tell him or her what your retirement goals are so they have a better idea about what strategies will work best for you.

Find New Sources of Retirement Income

For many people facing an uncertain financial future because of the problems associated with Social Security the idea of retirement is a fading dream. Many people will need to continue working well past retirement age to compensate for retirement fund scandals, financial hardships and other issues that have made saving for retirement problematic. If you enjoy work then finding a post-retirement position or business opportunity is not a bad thing, but an opportunity to have a second or third career.

There are many options that older adults have to make money during their retirement years. These options include acting as consultants to corporations, starting a new business and working part-time in a field that interests them. Finding post-retirement income will be a challenge, so it is important to start thinking of what you will do right now.

Most people will reach the age of retirement and instead of being able to relax after a long life of working, they will still have to work. This is for a number of reasons such as not saving their money, saving their money but not beating inflation, or bad investments. Stated below are a few ways to save for retirement which many people consider.

There are quite a few individual retirement accounts to choose from, but most of these do not gain a significant amount of interest. You can in some cases have your company save for you in the form of a pension. For the most part pensions tend to be a thing of the past, this is when the company you worked for took care of you by saving money for you.

The company would hire a manager and have the saved money of their employees invested professionally. This way it would be for certain that enough money was available for the upcoming retirees to retire. So why are pensions a thing of the past, you would think employees would like the company taking care of them in this way. Many companies did a poor job managing the saved money for pensions, thus no money for the retires so most pensions were done away with.

The next thing a lot of people depend on is social security, this means we are as young adults paying social security right now. Thus we should be able to look forward to being paid social security when we are ready to retire. If only the previous statement was true, but many people worry that even though you are paying social security right now it will be gone in a few decades. How can this be if people are actively paying it right now?

Simply because as the money is coming in or as it was saved the government has spent it. Whether the statements and rumors are true it would be wise not to put all your trust into a program managed by the government. It would be wise to invest on your own in order to receive retirement money, thus an investment that beats inflation would be needed.